General Mills seeks state assistance for expansion of Iowa plant

General Mills is considering an expansion of its production plant in Cedar Rapids, but it’s asking for state tax credits to help finance the $60 million project. Governor Terry Branstad says the decision will be made by leaders and staff in the Iowa Economic Development Authority — the public-private agency that now runs state economic development efforts.

Company executives plan to convert 10-thousand square feet of warehouse space into a food production area, ultimately putting 41 more people to work in the facility, with an average annual salary of $57,000. About 600 employees already work at the plant.

“Cedar Rapids is a major food processing center and you have General Mills and Quaker Oats and ADM and I don’t know how many others,” Branstad says. If General Mills secures the state tax credits, company officials say the expansion of its Cedar Rapids plant could begin in mid-2014 and be completed in 2015. General Mills brands includes Pillsbury dough, Betty Crocker cake mixes, Cheerios and Chex cereals, Gold Medal flour and Bisquick.